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Rate Increases Ahead

13/03/2020

Rate increases ahead

It never ceases to amaze me how fiscal responsibility is not one of the top considerations in Council decisions. We have a global crisis on our hands, with countries in lock-down, stock markets crashing, and businesses shedding staff. And yet it appears that our ratepayers still have unlimited funds to meet all the spending demands of the current Council.

Tasman Rate Increase Coming
Rates Increase

In the Regulatory Committee meeting this week we spent in excess of an estimated $150 000 for an early partial review of the dog bylaw. There was another considerable sum spent on the in-committee item. This was all unbudgeted expenditure.

Unfortunately, this is not the exception but has been the norm this year. Every meeting seems to consist of unbudgeted spending being allocated. In an ideal world, these “small” increases might be manageable, however, we are not living in an ideal world. We are living in times of extreme hardship ahead especially for many of our lower-income ratepayers. Those working will be facing reduced hours if not job losses. Retired people will likely have had many thousands wiped off their net worth in the Stock market over recent weeks, and those with money in the bank will be reduced to spending capital as interest rates head toward the negative.

As if this is not bad enough the rot of the Waimea Irrigation Dam is starting to fester out with another $25 million added to the initial $21 million overrun.

There are no signs of the overruns abating as they continue to dig into “the unknown.” Unknown that was pointed out at various stages during the investigation and consultation phases but apparently ignored by the various parties involved.

Extreme overrun risk certainly didn’t come through with the story that was being pitched by the likes of head of TDC engineer Richard Kirby (P95 it can’t go over budget), John Palmer who was in charge of getting the project over-the-line (some have questioned that he crossed the line), and later by the now CEO Mike (we’re on bedrock ) Scott. Nor was it mentioned as a concern by the TDC appointed directors who paid themselves $324 000 over and above their directorship fees to review and manage the early stages of the project. Especially when compared to the extreme risks we warned about in constructing riverside storage ponds.

The first hint that the various parties had been hiding the true risk of overruns was at the dam ground breaking ceremony where the comments were setting us up for the true cost of the dam yet to be revealed. Perhaps if the gruelling process of the 17-plus years of investigation had shone a light on the risks the former mayor might have found it easier to imagine a scenario where Council might have pulled out of the project.

Any reasonable person…

One thing is certain from this whole process – Tasman rates will not be dropping from the ranks of the most expensive district in New Zealand list any time soon. In fact, I think we will soon be a clear winner. A true legacy to Mayor Kempthorne and his band of faithful Councillors. Many of whom are keeping that legacy alive and thriving in the current Council.

Filed Under: Dam, Spending, Your Say Tagged With: Rate increase, Waimea dam

Waimea Dam

12/08/2019

waimea dam
waimea dam

I often get asked what my position on the Waimea Dam is.

When we were first presented with a model for the Waimea Dam I voted in favour. At that point it was more-or-less a user-pays funding model. As time progressed the funding model shifted to a public subsidisation of what is largely a private irrigation scheme. Not only in the construction costs but also in the forever ongoing running costs (ratepayer responsible for 51% of running costs) As it moved increasingly in that direction, I felt that I could no longer support the funding model.

However, it was not only the funding model that I have concerns over. I was unable to get satisfactory answers to questions I had about the longevity of the dam in relation to the rate of sediment build-up in the reservoir. If we are selling this dam as a 100 year plus solution to our water needs, then I would like to know that it will indeed have 100 years of capacity. I do not have that security of understanding from the information presented to me (or lack thereof).

Another concern is the budget allocated to certain aspects of the construction. I have experience in earthmoving so have some understanding of the mammoth task involved in operations such as clearing the reservoir of vegetation, putting in roads in unstable terrain, and complying with runoff regulations. Without direct access to the contractors to allay my concerns in how they intend to overcome some of these issues, I am suspicious of the amounts allowed for in the current budget.

Waimea Dam P95 guarantee
It can’t possibly go over $83 million dollars we have a P95

Other details we are assured are not an issue such as the lack of bedrock and reservoir wall stability do not line up with anecdotal evidence. The fact that no scientific study has been conducted into the path of the water into the aquifers nor the capacity of flow into the aquifers does not inspire confidence that releasing water into the river is going to solve the over allocation of pumping from the aquifers either. Nor was the fact that I was unable to get decommissioning cost allocation inserted into the Term Sheets, leaving future ratepayers exposed to the entire cost of the dam clean up at some point in the future.

Finally, I found it absurd that the irrigators were in-charge of the dam office during the stages of contractor procurement and final design of the dam when the irrigators had a capped contribution funding model. Whether they are corrupt or not, this situation leaves open a lot of room for accusation should it come to light that the budget is insufficient. It is thrust further into murky waters when Councillors were ruled ineligible for dam directorships (because of conflicted interests) but irrigators were appointed directors (surely a far greater conflict?).

The result of all this left me in a position where I could not support the current model of the Waimea Dam. I think it carries too much risk burden for the benefit to the ratepayer.

However, moving forward it is important to ensure that any cost overruns are not just borne by ratepayers and we make the most of the deal that has been dealt.  The Waimea Dam could be an asset to the Tasman region but the loading of dam related expenses onto the general ratepayer must stop. The ones benefiting the most need to be the ones paying the most.

Filed Under: Dam Tagged With: Dean McNamara, Waimea dam

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Dean McNamara Husband, father, and a fourth generation local from rural Tasman. No longer acting as your voice on the Tasman District Council (TDC). More about me.

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